Being famous does not mean a person will not face bankruptcy says Iowa Bankruptcy Lawyer

Des Moines, IA (Law Firm Newswire) February 15, 2013 – Being a celebrity or a well known person does not automatically protect anyone from going bankrupt.

There are any number of celebrities that have gone bankrupt and still rebounded to continue on with their lives. They have even come back to a more financially rewarding life. It can be done. Bankruptcy is not what it used to be in terms of being shameful and tantamount to a confession that someone was lazy or dumb or dishonest. It can happen to literally anyone, including the former Duchess of York, Sarah Ferguson, Nicholas Cage, Larry King, Cyndi Lauper and Zsa Zsa Gabor. In other words, history is littered with stories of notable people declaring bankruptcy because they were in a desperate situation financially indicated Kevin Ahrenholz, an Iowa bankruptcy lawyer.

These days, no one goes to debtor’s prison like they once did. Now, both creditors and debtors are protected from unfair economic practices. Honest debtors are allowed to work their way out of a financial jam. There is a solution to being deep in debt and often it means seeking bankruptcy protection. If a debtor files today, the bankruptcy laws that apply are usually under federal laws, but state bankruptcy laws fill in the blanks. Filing for bankruptcy means filing in a federal bankruptcy court.

Traditionally, bankruptcy has never respected who anyone is, what they do, whether they are young or old or rich and famous. Bankruptcy can affect literally anyone. Until fairly recently, those people who found themselves needing to seek bankruptcy protection, felt ashamed and guilty. They felt like the world was pointing a finger in their direction. This is not the case. Bankruptcy can happen as a result of divorce, bad timing, poor judgment or medical issues; things people do not have any control over remarked Ahrenholz.

Additionally, filing for bankruptcy is not always a choice a person will make on their own. There are two kinds of bankruptcies, involuntary and voluntary. Involuntary bankruptcy is rare, but does happen on occasion, when a creditor legally forces bankruptcy proceedings on a debtor. Most bankruptcy proceedings are voluntary.

No matter what the reason is for seeking bankruptcy protection, an Iowa bankruptcy lawyer understands the situation.